TSX-V: SMP � � � � Strata Minerals Inc. Corporate Overview and Diamond Mountain Project Option June 2014
Disclaimer This presentation contains certain statements which constitute “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking statements are based on the estimates and opinions of the management of Strata Minerals Inc. (“SMP”) on the date the statements are made and SMP does not undertake any obligation to update forward-looking statements should conditions or management’s estimates or opinions change, whether as a result of new information, future events or other factors, except as required by law. All statements other than statements of historical fact herein are forward-looking statements and include, but are not limited to: (i) estimates and projections of future phosphate prices; (ii) estimates and projections of future phosphate production and demand; (iii) estimates and projections of reserves and resources; (iv) estimates and opinions regarding geologic and mineralization interpretation; and (v) estimates of exploration investment and scope of exploration programs. When used in this presentation, the words “plans”, “expects”, “anticipates”, “budgets”, “forecasts”, “strategy”, “goals”, “objectives”, “could”, “should”, “may”, “potential” and other similar expressions relating to matters that are not historical facts are forward-looking statements. All forward-looking statements herein are based on SMP’s current beliefs, as well as various assumptions and information currently available to them. These assumptions include, but are not limited to: (i) continued growth in world population; (ii) continued increase in personal incomes; (iii) continued increase in grain-intensive meat diets; (iv) continued decline in the global agricultural land base; (v) commercial discoveries of phosphate on the properties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements, in particular, the estimates do not include input cost increases or phosphate price variations that could occur in the future. The forward-looking statements herein are subject to risks, uncertainties and other factors. The risk factors may be generally stated as the risk that the assumptions and estimates expressed herein do not occur, and include, but are not limited to: (i) phosphate and other commodity price volatility; (ii) political and operational risks; (iii) government regulation of mining activities; (iv) environmental risks; (v) title disputes and claim; and (vi) risks associated with early stage exploration mining companies including, but not limited to, the risk that such companies may not make any commercial discoveries, take any discoveries into production, or obtain sufficient funding to carry out their work plans. We caution potential investors not to place undue reliance on the forward-looking statements herein, as a number of important assumptions could cause the actual outcomes to differ materially from the beliefs, plans, expectations and estimates expressed herein. Potential investors are cautioned that there has been insufficient historical exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. � ���������� �
Macro Drivers to Global Fertilizer Demand 1) Increasing World Population 2) Decreasing Arable Land Per Capita 10,000 500 9,000 (HA / 1,000 people) Population (millions) 8,000 Arable Land 400 7,000 300 6,000 5,000 200 4,000 3,000 100 Developed Countries CAGR +0.18% � � � � 2,000 0 1,000 World Developed Countries Developing Countries 0 2006 2030 2050 2000 2006 2015 2030 2050 � ������������������������������������������ �������!�"���� � ������������������������������������������������������ �����������#����!�"���������� 3) Increasing Meat and Diary in Global Diets Increase in Fertilizer Demand 350 Consumption of Meat and Dairy 300 250 191 kg/ha 300 Million Tonnes Fertilizer 250 200 Fertilizer Application Per Annum (N,P,K) 250 (kg per capita) 200 132 kg/ha 150 (kg/ha) 200 150 150 100 100 100 50 50 50 0 0 0 2000 2050 World Developed Countries Developing Countries World Developed Countries Developing Countries 2000 2006 2030 2050 � $�%�����&�����������"�������������'��'��(��'��������������������'� � +�� ��������������� ������������"����������������������������(��������������� ����� �������������������������'�������������)����*�����'�������� ��������������������%���'������&'!����������"�����,�����������%��� �������������� ������������%��� Source: Food and Agriculture Organization - UN, World Agriculture Towards 2030/2050 � ���������� �
Global Phosphate Industry � From Mine to Fertilizer Phosphorous is an essential to plant growth (root and stem development), photosynthesis and seed Phosphate Ore deposit development � Phosphorous typically makes up 25% of mass in fertilizer (N,P,K) mixes Phosphate Rock � There are no substitutes for phosphate � A balanced diet results in depletion of approximately Phosphoric Acid 3.2 kg/yr phosphorous (22.5 kg/year of phosphate rock concentrate) SSP TSP DAP/MAP Phosphate Production and Consumption 1 Key Phosphate Producers 2 (in mt) Production Consumption Surplus/ Others United States Growth Growth 17% Tunisia 2010 2017 pa 2010 2017 pa Deficit Europe 15.5 19.6 3.4% 23.8 28.1 2.4% (8.5) Russia Australia Africa 46.7 47.6 0.3% 26.9 30.5 1.8% 17.1 North America Brazil 29.2 28.5 (0.4%) 32.1 31.3 (0.4%) (2.8) Morocco and Latin America Western 9.2 16.3 8.5% 12.8 17.2 4.3% (0.9) Sahara Middle East 12.1 19.5 7.0% 7.0 15.8 12.4% 3.7 15% Asia-Pacific 68.3 84.6 3.1% 78.2 93.2 2.5% (8.6) World 181.1 216.0 2.6% 180.8 216.1 2.6% (0.1) Jordan China Israel Egypt 35% Note � 80% of global production comes from the MENA region 1 British Sulphur Consultants, Phosphate Rock, 10 Year Outlook Report 2 United States Geological Survey, 2009. � ���������� �
Global Market for Phosphate Rock Global Phosphate Rock Production and Exports � Global trade of phosphate rock represents approximately 15% of total phosphate production � Total global trade of rock phosphate estimated at 29 mt in 2012 with Morocco being the largest exporter of rock at 9.5 mt � Further vertical integration, most notably by OCP in Morocco, may reduce phosphate rock -�����.�/-�-"�0� �����1������"�20�3���'��"�345"�3460"�607 available for export in the future Phosphate Rock Export by Country (2011) ������������������������������������������� �������������������������������������������������� ������������������������������������������ ��������������������������������������� ���������������������������������������������� ��������������������������������������� ������������ !������"�������#��������#����� $%&' -�����.�/-�-"�0� �����1������"�20�3���'��"�345"�3460"�607 � ���������� �
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